Mondelēz International has reported its fourth quarter and full-year 2017 results, reporting a 2.9% rise in net revenue. In a press statement, Brian Gladden, CFO of Mondelēz, said that the company is "pleased with its solid results for 2017”.
Gladden explained that the company delivered a strong year of margin expansion and earnings growth, achieving progress from four years ago. He added that the improvements in performance were fuelled by Mondelēz’s “power brands and favourable trends in emerging markets".
Mondelēz CEO Dirk Van de Put added that the company also has “strong foundational pillars in place”, and enters the year with improving momentum in its business.
Moving forward, the brand’s 2018 plan will emphasise on execution, ongoing improvements in top-line growth and continuing actions to expand margins.
It also expects double-digit adjusted earnings per share growth on a constant currency basis for 2018. It also expects organic net revenue to increase 1% to 2% for 2018 and adjusted operating income margin at 17%.
Closer to home, Mondelēz International launched a global technical centre in Singapore. The new facility will focus on innovation, developing, developing new products and technologies. The centre will also contain a creative studio where new packaging will be designed and tested. This was done together with the Agency for Science, Technology and Research (A*STAR).
The centre looks to benefit Mondelēz International brands such as Clorets, Halls, and The Natural Confectionery Company candy, and Stride, Trident, and Dentyne gum, Cadbury Dairy Milk chocolate and Oreo biscuits.
The new centre will also be home to up to 75 experts – scientists, developers, engineers, analytical chemists and other specialists. It will also see close collaboration on innovations with more than 35 sites in the Mondelēz International manufacturing network across AMEA.
The new facility is part of the US$65 million investment the brand recently announced in nine, research, development, quality and innovation (RDQI) hubs, globally, three of which are in Asia. The centres are aimed at helping Mondelēz International better recruit, retain and develop talent across a range of science and technical disciplines. This while streamlining processes and accelerating the company’s growth and innovation. Currently, there are five other Mondelēz International Technical Centres in the United States, Brazil, two in UK and in Poland.
“Singapore’s fantastic infrastructure, thriving RDQI ecosystem and the collaborative approach of government organizations and public-private partnerships make it a perfect place for innovation. This is one of the many reasons why we have made Singapore the home of our AMEA region,” Maurizio Brusadelli, EVP & president AMEA (Asia Pacific, Middle East and Africa) said.
“As consumers’ preferences and lifestyles continue to evolve, innovation is core to achieving that mission. These hubs will improve speed, efficiency and effectiveness, while increased scale will enable us to more quickly meet consumer needs,” Rob Hargrove, executive vice president, research, development, quality and innovation, said.
“Together, we have created an innovation ecosystem that has a critical mass of talent with a rich mix of research and innovation capabilities. A*STAR certainly looks forward to building a long-term partnership with Mondelēz International,” Lim Chuan Poh, chairman of A*STAR, said.